Dirigo, we’re raring to go

I was inspired by Todd Benoit’s Jan. 22-23 commentary, “Dirigo, because we’re on our own.” Benoit urged Gov. John Baldacci to explain “with clarity and conviction” to the people of Maine why it is necessary for us to have vision and invest in the future, and why this commitment is so important now, when our resources appear to be so discouragingly limited.

Benoit’s message was especially appealing to me after reading about the “Finnish Miracle in Information Technology” in the business section of a research and technology magazine. Finland shares many of Maine’s characteristics. It is a beautiful land with a cold climate, sparsely populated (25 inhabitants per square mile) in small population centers, and was an agricultural society industrialized through the exploitation of its rich forest resources.

In 1982, the Finnish government initiated a set of policies aimed at the technologic development of the country. In the decade that followed, they increased the investment on research and development (R&D) from 1.2 percent of the gross domestic product in 1982 to 2.2 percent in 1992. This has risen to 3.5 percent of their GDP today. The management of these policies was given to the newly founded Center for Technologic Development (CTD), controlled by the Ministry of Trade and Industry.

The most significant aspect of the new policies was the initiation of CTD-funded national R&D programs that were located in universities and research institutes but worked in close collaboration with emerging industries. These industries provided 25 to 40 percent of the total R&D investment. At the same time, they intensified their participation in international R&D consortia. Today, Finland is involved in numerous international R&D ventures not only with other European countries but also with the United States and Asian countries. Finland ranks third in the world (after the United States and Singapore) in high technology competitiveness, and is a leader in regards to the intensity of collaboration between businesses, universities and research institutes.

An important factor in the development of telecommunications in Finland was the large number of local independent companies managing supply and demand as opposed to a large monopoly carrier having a single “local supplier” for providing both a network and facilities. These local companies pursued a policy of quick adoption of the most recent technology and created a demand for the equipment produced by the industry.

Another factor, which is part of all success stories, for the establishment of an array of businesses, is the leadership provided by one or more companies. In Finland, Nokia assumed the leadership role. Nokia was founded in 1865 specializing in wood raw materials but later extended its activities to rubber products, cables, metals and plastics. Until 1988, telecommunications comprised only 10 percent of the company’s business activities. In the early 1990s, a decision was made that the most profitable route for the company was to focus on telecommunications and divest itself of its other, nonstrategic business units.

This decision was in congruence with the world business climate as well as the government’s decision to promote high-tech industries. Today, Nokia, part of the Finnish miracle, is a world leader in mobile telecommunications, with more than 51,000 employees in 11 countries, and sells its products in 130 countries.

But the most important factor in realizing the miracle was the Finnish people. They easily adopted the new telecommunications technologies. The population of Finland is dispersed within a large geographic space, and telecommunications systems needed to be economical and reliable. These conditions contributed to the development of the first systems designed specifically for small population centers. The government’s direction paid dividends because the case was made in a convincing manner to the people. Success was not immediate, and sacrifice was necessary both by the people and the industry.

The Baldacci administration has exhibited admirable courage, openness and creativity under very adverse economic conditions. Three very important phenomena have been occurring in the state. The number of Mainers pursuing higher education has been steadily increasing, R&D has been receiving more attention and support, and the concept of “Creative Economy” has been introduced. Educated individuals are pivotal to the launching of both R&D and a creative economy, which in combination have the potential of becoming for Maine what information technology has become for Finland.

In fact, creative economy, in a broad sense, encompasses R&D. As Gov. John Baldacci has stated, “The Creative Economy is a catalyst for the creation of new jobs in Maine communities. People who create jobs want to live in places that have a diverse cultural mix and an innovative and educated work force. Maine will be competitive economically if we continue to capitalize on the synergies between entrepreneurship, education, the arts and quality of life.”

The people of Maine are ideally suited for establishing a thriving creative economy but they need the inspiration and direction only a visionary leader can provide. The governor is such a leader. His State of the State address was uplifting. This is the time for him to take his message to the people with passion and conviction. And, this is the time for experts and legislators to develop creative policies that will be successful only if the people of Maine share the vision behind these policies. When Mainers adopt this vision of a future brightened by creative joy, abundance and interconnectedness, they shall have the endurance it takes to build a creative economy. Maine can become a society that creates, teaches and generates technical and artistic innovation, and produces goods and services that people around the world would like to have.

When the UMaine Black Bears work toward a national ice hockey championship, the people of Maine from Kittery to Fort Kent give them their unconditional support that softens their few disappointments. And the joy in their success is all the greater because they win for all of Maine. When the rest of us understand what we can accomplish working for a common goal, the future will be brighter for all of Maine.

Stellos Tavantzis lives in Old Town and is on the faculty of the University of Maine.